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Government Business Loans In Canada: Taking You Inside The Guaranteed Loan Program
Government SBL Loan Financing Doesn’t Have To Feel Like A Contact Sport



 

YOUR COMPANY IS LOOKING FOR  GOVERNMENT LOAN FINANCING!

CANADA SMALL BUSINESS FINANCING GOVT LOANS

You've arrived at the right address! Welcome to 7 Park Avenue Financial

Financing & Cash flow are the  biggest issues facing business today

ARE YOU UNAWARE OR   DISSATISFIED WITH YOUR CURRENT  BUSINESS  FINANCING OPTIONS?

CALL NOW - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs

EMAIL - sprokop@7parkavenuefinancial.com

7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Oakville, Ontario
L6J 7J8

 

guaranteed government loans

Government business loans in Canada work when you know how they are used and if your existing or new company qualifies. To some, it must feel tougher than a contact sport -  but that should NOT  be the case.  Simple as that. Let's dig in.

 

To some, the connotations of a Government guaranteed loan conjures up images of ' red tape' and bureaucracy. That clearly is NOT the case by the way.

 

WHAT DO YOU NEED TO KNOW ABOUT THE CANADA SMALL BUSINESS LOAN PROGRAM

 

So what does the business owner/entrepreneur need to know about the SBL loan program in Canada? Let's take a look at some myths and reality around the program.

 

INFORMATION ON THE PERSONAL GUARANTEE

 

One issue that clients always want to talk to us about is the personal guarantee aspect of this loan financing. Here's the good news... here's the bad news. Yes, there is a personal guarantee covenant around the program financing, but the good news is that it’s a limited guarantee of 25% of the financing you are approved for.

 

KEY STATISTICS ON THE GOVERNMENT SMALL BUSINESS LOAN

 

While it might be true ( we're not sure) that this financing doesn't allow your business to become the largest and successful company in Canada the reality is that it finances around 7000-8000 businesses every year in all sectors of the economy - including mfg, hospitality, franchising, etc.

 

WHO GUARANTEES YOUR LOAN

 

So who is in fact the Guaranteed Loan Program in Canada? The truth is that is simply an offering, via INDUSTRY CANADA, that is made to all Canadian banks and some misc.  other financial institutions that wish to participate and administer the program. The interest rate is based of the Bank of Canada prime rate and is very competitive.

 

WORK WITH A BANKER WHO UNDERSTANDS THE PROGRAM

 

So you don't have to ' visit' the government, so to speak, all you have to do is to find a qualified banker who understands the program. On occasion that is a challenge by the way, so that’s when it might be advantageous to seek out a business financing advisor who is conversant and comfortable with the program.

 

WHAT ARE 6 KEY REQUIREMENTS FOR APPROVAL ON THE GOVERNMENT LOAN PROGRAM IN CANADA

 

So what is in fact involved in getting approval for government business loans with a financial institution such as a bank or credit union? To be eligible for the guaranteed loan program your business must have a premises lease that is available to your company for at least as long as the term of the loan. Typical requirements are:

 

1.Business plan ( 7 Park Avenue Financial prepares business plans that meet and exceed bank and commercial lender requirements)

 

2.Cash Flow

 

3.List of items to be financed - i.e. vendor quotes, invoices, etc (Assets that your company purchased in the last 6 months can still be refinanced)

 

4.Proof of incorporations/business registration

 

5.Premises lease

 

6.Personal net worth/credit info on business owner/owners

 

When you look at those requirements above they really don’t differ from any other type of business financing application.

 

The government-guaranteed loans do not have a requirement for business owners to put up outside collateral, i.e. collateral mortgages, other assets, savings, etc -  That's a good thing!

WHAT DOES THE CANADA BUSINESS LOAN PROGRAM FINANCE?

Commonly known as the SBL loan, the program finances, for small and medium sized businesses ( revenues under 10 million dollars) :

 

Equipment,

Leasehold improvements,

Real estate,

Purchase of an existing business.

 

Deals are structured as term loans, not lines of credit, and typical terms are 5-7 years as far as repayment. By the way, loans can be repaid without penalty, which often is not possible with other types of financing.

 

2 KEY MISUNDERSTANDINGS AROUND GOVERNMENT LOANS

 

It's important to understand what the program is not. It is not:

 

A CASH LOAN

 

A BUSINESS LINE OF CREDIT

 

government guaranteed loans           business financing in canada

CONCLUSION

If you want to be an ' insider' on government business loans and the Canada small business financing program in Canada and have the ability to find out if this loan works for your firm seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with your guaranteed loan needs.

Click here for the business finance track record of 7 Park Avenue Financial





7 Park Avenue Financial/Copyright/2021/Rights Reserved

' Canadian Business Financing With The Intelligent Use Of Experience '

 STAN PROKOP
7 Park Avenue Financial/Copyright/2022

 

 

 

 

 

Stan Prokop is the founder of 7 Park Avenue Financial and a recognized expert on Canadian Business Financing. Since 2004 Stan has helped hundreds of small, medium and large organizations achieve the financing they need to survive and grow. He has decades of credit and lending experience working for firms such as Hewlett Packard / Cable & Wireless / Ashland Oil